Schroders adds Global Sustainable Growth and Global Energy Transition to its UK sustainable fund range

Schroders is today announcing it has launched two UK Unit Trusts for its successful Global Sustainable Growth (GSG) and Global Energy Transition (GET) funds to add to a growing range of UK funds and investment trusts focused on sustainability. This follows the launch of the Schroder BSC Social Impact Trust Plc in December 2020.

These launches demonstrate Schroders’ ongoing commitment to providing a sustainable fund range to meet the evolving needs of UK investors. The GSG and GET strategies boast strong track records with the Luxembourg-based equivalent of GSG launched in 2010, while GET was also first launched as a Luxembourg vehicle in 2019 as part of Schroders’ Global Transformation Range.

GSG has delivered robust cumulative net ten year performance of 186%[1], while GET has a cumulative net performance of 114%, since inception.[2] In particular, they produced returns of 27.5% and 91.9% in 2020 alone.[3]

Doug Abbott, Head of UK Intermediary, Schroders commented:

“The UK launches of the Schroders Global Sustainable Growth and Global Energy Transition funds provide an exciting opportunity for UK investors to access two high-conviction global portfolios which harness active engagement to improve outcomes for shareholders, but also for the society and environment.

“Although 2020 was a challenging year for economies, investment strategies focused on sustainable companies and renewables performed well. It is clear that UK investors’ attitudes towards allocating to sustainable investments is changing and we are very pleased to continue to grow our range of offerings to UK investors.

“Schroders has recently achieved the milestone of fully integrating ESG factors into our decision-making across all of our investments, fulfilling our intention announced in November 2019.

“These funds alongside our other sustainable offerings, such as the Global Cities fund and Schroder BSC Social Impact Trust Plc, will certainly help UK investors achieve their goals as we continue to look to grow our UK domiciled range of dedicated sustainable funds and investment trusts during 2021.”

The Schroder Global Sustainable Growth Fund seeks to provide capital growth by investing globally in the shares of sustainably-run companies. These are businesses that are managed for the long term and take into account the interests of all stakeholders, including wider society.

Katherine Davidson, Schroders Portfolio Manager, Global Sustainable Growth Fund, commented:

“The Covid-19 pandemic has shone a spotlight on how and why companies achieve success, and the emergence of a new social contract between companies and society. How companies treat their staff, manage their supply chains and keep their customers safe is also of growing interest to investors.

“As a result, investors are increasingly assessing company performance based not only on their financials, but also the impact that businesses have on their stakeholders.

“One of the few positives of the crisis is that it has enabled us to start engaging with companies who previously hadn’t seen the business case for sustainability. Capital markets have rewarded companies that have acted responsibly through the pandemic, as demonstrated by the broad-based outperformance of sustainable funds and indices.”

The Schroder Global Energy Transition Fund aims to identify growing opportunities across the clean energy-focused investment universe, spanning renewable power production and energy equipment, transmission and distribution, energy storage, smart grid technologies and electric vehicles.

Mark Lacey, Schroders Head of Commodities and Portfolio Manager,Global Energy Transition Fund, commented:

“The transition to clean energy is a long-term investment opportunity that will transform the entire energy system over the next 30 years and beyond.

“As we look ahead into 2021, demand for clean energy looks set to rise as costs fall. Improvements in technology and economies of scale mean that renewable energy is now cost-competitive with fossil fuels, even without subsidies. And the desire of consumers for more emissions-friendly technologies - such as electric vehicles – is set to fuel the growth of clean power generation.” 

According to Schroders’ UK Adviser Study 2020[4], 74% of the UK financial advisers surveyed now explicitly consider ESG factors as part of their fund selection process, a significant rise from 43% in 2019.

Furthermore, according to Schroders Global Investor Study 2020, a significant majority of UK investors made it clear that they expect their investments to align with their personal beliefs.[5]

 

[1]Schroders Sustainable Growth Fund (GSG), A Accumulation USD. Cumulative Net performance since inception, 23 November 2010: 186.2% As at 31 December 2020.

[2] Schroders Global Energy Transition Fund (GET) A Accumulation USD. Cumulative Net performance since inception, 10 July 2019: 114% as at 31 December 2020

[3] 12 month performance for GSG and GET as at 31 December 2020

[4] Schroders UK Financial Adviser Survey has been conducted between 2 and 6 November 2020, completed by 125 financial advisers.

[5] Schroders Global Investor Study 2020. Total of 78% of UK investors would not invest against their personal beliefs.